This pharma stock “is beating everything”, investor says
BNN Bloomberg Market Call guest Colin Cieszynski said Teva Pharmaceutical Industries (Teva Pharmaceutical Industries Stock Quote, Chart, News, Analysts, Financials NYSE:TEVA) has emerged as a standout performer amid a broader rotation into drug stocks, driven by strong price momentum and relative strength rather than company-specific catalysts.
Speaking on the Jan. 9 program, the SIA Wealth Management chief market strategist described Teva as a large-cap global pharmaceutical company headquartered in Israel, noting that his firm follows the company through its American depositary receipt listed on the New York Stock Exchange.
“This is a large cap, one of the world’s bigger pharmaceutical companies. It is number one ranked in our ADR, CDR universe right now… it is beating everything.”
“This is a large cap, one of the world’s bigger pharmaceutical companies,” Cieszynski said. “It is number one ranked in our ADR, CDR universe right now… it is beating everything.”
He added that the stock began a sustained breakout above US$21 in September and has continued to advance, recently trading above US$32.
“This stock has been under very strong accumulation for about six months now,” he said.
Asked what specifically is driving Teva’s outperformance relative to peers, Cieszynski said his firm’s process is focused primarily on market trends, price action, and relative strength rather than company fundamentals. He said that SIA first assesses whether the broader equity market is supportive, then identifies which regions and sectors are outperforming, before narrowing down to individual stocks with the strongest momentum signals.
“When we look at the market, we look, is the market favourable for equities? Yes,” he said. “Then we went to the next stage… the drug companies were starting to show relative strength. And then we go to stocks and we say, okay, well, of the drug companies, which stocks are showing the highest relative strength? And this was one that came right to the top.”
Teva shares have gained 205.9% over the past three years. Of the analysts covering the stock, 11 rate it “Buy”, one “Hold”, and one “Sell”, with a consensus price target of US$34.50.
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Rod Weatherbie
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Rod Weatherbie is a journalist based in Prince Edward Island. Since 2004, he has written extensively about the Canadian property and casualty insurance landscape. He was also a founder and contributing editor for a Toronto-based arts website and a PEI-based food magazine. His fiction and poetry have been featured in The Fiddlehead, The Antigonish Review, and Juniper.